Explore Candidates United Kingdom Conservative Party on Economy

Conservative Party on Economy

The economy is always a key topic in both national and local elections. However, seldom has there been a period when the state and future of the economy has been such a pertinent issue in a UK general election. Following the collapse of the global economy, and the deteriorating state of the nation’s public finances, economic solutions will be fiercely debated in the 2010 general election. Issues include the future levels of government spending, the treatment of the financial sector going forwards, and the level of taxation imposed by the UK government.
Conservative Party strongly supports a reduction in total government spending (for example, in areas such as social security, education and defence)

Sooner you deal with a debt problem, the better. We need to cut wasteful government spending instead of increasing national insurance taxes on hardworking people\"

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"We face a debt crisis. We have been honest about the need to tackle Labour’s debt crisis, and set out some of the tough choices we will make. To restore investor confidence, we need a credible plan to get the £178 billion annual deficit under control. That means taking the tough choices in public spending we have set out, such as a one-year public sector pay freeze, except for the lowest paid"

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Conservative Party opposes a greater amount of taxation on individuals who earn £150,000 or more

"Our objective is to reduce the tax burden on families and businesses. Not only is that the right thing to do, but in a fiercely competitive global economy we cannot afford to do anything else."

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Conservative Party strongly opposes greater property taxes for those who own property valued at £1,000,000 or more

Tories plan to scrap the levy on estates over £1 million

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"Conservatives believe in low taxes. It is right that people keep more of their own money. This leads to a stronger economy, which benefits everyone. The tax system is both unfair and complex. Labour have put up taxes 66 times. Pensioners, homeowners, businesses and families on all income levels are paying more to a Government which is not giving them value for money. Worse, under a third Labour Government, taxes would have to rise again. Labour’s plans mean that the tax burden will rise to its highest level for 24 years. The Conservatives want to put Britain on the path to becoming a lower tax economy. By slimming down fat government, and getting a grip on public expenditure, we want to make our taxes fairer and simpler."

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Conservative Party strongly supports government legislation regulating the amount of pay and bonuses received by those working in the investment banking industry

"Improve the system for regulating banks by asking the FSA to tackle irresponsible bonus structures. Institutions that use massive bonuses to encourage short-term reckless risk-taking will have to hold more capital to offset their higher risks…Strong regulation by able regulators benefits the financial services industry as well as the wider economy...We will empower the Bank of England to use capital requirements to crack down on risky bonus structures. From the banks' point of view this will effectively introduce a 'tax' on risky bonus structures that incentivise employees to seek short term profits at the expense of longer term stability. "

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Conservative Party opposes the government requiring banks to split their investment and retail departments

"We will empower the Bank of England to impose much higher capital requirements on high risk activities such as large scale proprietary trading carried out by banks that also take retail deposits. In practice this could prevent banks that take retail deposits from engaging in many of these high-risk activities by making them more expensive. At the same time the Bank will examine the case for a more structural seperation of these activities in international policy forums."

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Conservative Party strongly supports replacing the Financial Services Authority with the Bank of England as the primary regulatory institution governing the financial services sector

"We will give the Bank of England the power to regulate the pay structures, riskiness, complexity and size of financial institutions, and require those with structures that put financial stability at risk to hold large amounts of capital as an insurance policy to protect the taxpayer. We will abolish the Financial Services Authority, and will create instead a strong new Consumer Protection Agency."

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Conservative Party strongly supports streamlining and simplifying the tax code

"We will create an Office of Tax Simplification...Our corporation tax rate is becoming increasingly uncompetitive and a burden on British businesses."

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Supports a reduction in the headline rate of corporation tax to 25 pence as a first step to lower business taxes, funded by a reduction in complex allowances.

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"The tax system has grown increasingly complex over the last decade and urgently needs to be simplified...We will create a simpler, greener and more transparent tax system."

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